Indo-US mechanism to end nuclear liability stalemate

India-US joint working group will hold its first meeting in January to untie the knot created by the civil nuclear liability law and guidelines.

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Dipanjan Roy Chaudhury

New Delhi

January 1, 2012

UPDATED: January 1, 2012 19:27 IST

An India-US joint working group (JWG) will hold its first meeting in January in an attempt to untie the knot created by the civil nuclear liability law and guidelines that have stalled participation of American nuclear firms in India's lucrative market.

The JWG, which comprises officials from the Department of Atomic Energy and lawyers dealing with matters of nuclear liability, was proposed by Prime Minister Manmohan Singh when he met President Barack Obama in Bali last November on the sidelines of the East Asia Summit.

The JWG will meet in the US. The dates are being worked upon.

A key focus of the Bali meeting was India's liability law that has prevented the US firms from coming forward to tap India's $150-billion nuclear energy market.

In his meeting with Obama, Singh sought to allay US fears and assured to discuss concerns over the liability law, but made it clear that such concerns would be addressed "within the four corners of the law of the land".

As a follow up of the Bali meeting, US deputy secretary of state William Burns visited Delhi in December and met the PM, the external affairs minister, the national security adviser and the foreign secretary.

It is understood that during his visit, Burns aired disappointment and a "sense of betrayal" as it was mainly Washington's efforts that saw India get a waiver from the Nuclear Suppliers Group in September 2008 that enabled several civilian nuclear deals that India later signed.

It is no secret that the US expected a substantial share of India's nuclear market for their efforts and was disappointed that Russian and French nuclear firms made headway.

The Indian officials are believed to have told their American counterparts that all the grievances will be addressed within the purview of liability law and guidelines to facilitate participation by US nuclear firms.

The aim of the JWG will be to study in detail the provisions of the Act and the guidelines against which the US has reservations and find a way out that is acceptable to both sides.